2/5/2010
NEWS BRIEFS
Black & Decker Q4 Fastener Sales Gaining Ground
Black & Decker reported Fastener and Assembly Systems segment sales decreased 2% to $154.9 million in the fourth quarter of 2009, which the company claimed showed progress from earlier in the year due to improved auto production. Fastener segment profit fell 8% to $17.5 million during Q4.
“While demand remained weak in Japan, other key regions posted roughly flat sales this quarter,” stated CEO Nolan Archibald. “Operating margin of 11.3% was better than in the third quarter, due to volume leverage and commodity deflation, but was below the prior-year level.”
Full year fastener sales decreased 24% to $536.6 million and profit decreased 62% to $39.5 million. Operating margin fell to 7.4%, “primarily due to the automotive industry collapse early in the year.”
Consolidated sales in 2009 decreased 22% to $4.8 billion, while net cash generation grew 50% to $584 million. Black & Decker finished 2009 with $1 billion in cash and net debt of $632 million.
Last quarter Black & Decker announced a merger with Stanley Works valued at $4.5 billion. The all-stock transaction will give Stanley a 50.5% stake in the new $8.4 billion company.
Stanley Black & Decker, will be headquartered in New Britain, CT, with the Power Tools headquarters remaining in Towson, MD. ©2010 GlobalFastenerNews.com
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